us$825.00, page-21

@RichardPossum, I have given it a lot of thought as you why the gold miners get smashed when the USD POG falls and I think I got it. There seems to be a lot of foreign investment in our markets specifically US money flowing in. From the perspective of a US citizen the moves in share price make sense since they are also using the share price as a hedge against their currency. So if the AUD is rising from their perspective the SP is rising. So rather than just thinking the market is irrational, I think this better explains the situation. Also, this cross pollination between markets shows why we can have a global boom and then a synchronised bust as we are now having even though our economy is in a little better shape than the US.

I read somewhere that a companies SP is more a reflection on the economic health of it's investors rather than the company itself, and in light of the above that makes a whole lot of sense. It would be good to know exactly how much foreign money is in our market. I suspect it's far more than we think.

Regards,

Cluster.